Finding Loans For Bad Credit
An abysmal credit score is not exactly an invitation to the finest loans that banks have to offer. If your credit rating is in the toilet, it is next to impossible to get a bank to say hello, let alone acknowledge your request for a date. Rather than sulk in the bushes, get your finances in order and start improving your credit rating. In the meantime, obtaining high-interest loans for bad credit is most likely your alternative.
Remember, every time you apply for a loan, your credit score is dinged by the inquiry. If you are applying at every bank in town, you are actually doing more damage to your ratings. When loans for bad credit are not available because of paltry scores, it is advised to obtain a secured credit card. This means you will deposit money with a lender, say a few hundred dollars. The lender then issues you a credit card in the same amount. Initially, this idea might not make sense, but every month as you pay your credit card bills on time, your credit score improves.
Ratings do not rapidly rise overnight, however, as it takes at least
several billing cycles to see a difference. But this is a great way to
start rebuilding credit.
Consumers with rock bottom credit scores are not just going to be able to find loans with bad credit. As ratings improve, options become available. Keep in mind that finance charges and interest rates are going to be many times higher than for someone with perfect credit. Scores less than 620 are categorized as subprime while 800 and above are considered perfect.
However, options do exist for loans with bad credit, such as CitiFinancial and PHH Mortgage. Both are reputable and established companies. Wells Fargo is routinely recommended for the bank’s history of approving clients with horrible scores. Local banks are usually the best place to start, as friendly representatives can answer questions regarding loan policies. Always beware of no-name generic financing firms that fly in by day and scam by night.